personal home converting to rental: Address LLC?
Hi everyone,
First, thanks for reading my post, and for all the information here on BP! Wow!
I have a PA home I'm currently using as my personal residence, traditional bank financing, >20% equity, that I've been in for almost 2 years. I'm interested in moving it out of my "liability column" and into my "asset column" by leasing it. (Should be favorable cashflow after all is said and done, including mgmt. co, reserves for repairs, etc).
My question is this: I'm interested in putting the property under an LLC for income passthrough, expense protection liability protection and all the other reasons one would do this. How is this best accomplished? I know how to set up an LLC, but specifically, do I retitle to house under the LLC as owner? Sale from me to LLC for $1? Sale from me to LLC for current market value (I don't have the capitalization depth to fund the LLC first, then show a paper money trail)? How do traditional lenders view this sort of thing?
Thanks in advance for your thoughts, help or advice. I'm a single dad with twin 11 year olds, & we truly appreciate it!
Cheers
Pete